julie gorte: But investors might express surprise at some of the stocks that ESG funds include in their portfolios, according to Market Watch. That's likely because many investors may remember a scandal-laced headline for years while forgetting more recent admirable strides made by that same company. Institutional investors, by contrast, tend to take a more methodical approach in analyzing whether companies earn a favorable do-gooder rating. Julie Gorte, senior vice president at Pax World Funds, notes that negative news tends to garner more coverage and exert more staying power than positive developments. With these large companies, something's more likely to get covered if it's a bad thing. ESG starts with more obvious asset classes such as large-cap domestic, Gorte said.
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